SHANGHAI, Dec 26 (SMM) – Smaller arrivals, together with sellers destocking at the year-end lowered inventories of aluminium billet by 11,900 mt over the week ended Thursday December 20, the biggest weekly decline since the end of April. Deliveries from social warehouses continued to pick up as of Monday December 24, according to SMM data.
Production cuts at aluminium smelters lowered supplies of molten aluminum, and thus affected the production of aluminium billet. Shortage in transportation and logistics in Xinjiang, as well as high freight charges at the end of the year, slowed deliveries of cargoes. These accounted for the limited arrivals of aluminium billet last week.
Last week, cash flow issues drove billet producers to lower offers to boost purchases, which was reflected by lower processing charges for aluminium billet in the eastern and southern markets.
SMM data showed that stocks of 6063 aluminium billet across five major consumption areas shrank some 11,900 mt over the week ended December 20 to stand at 108,600 mt. Social warehouses across those areas saw 50,900 mt of aluminium billet delivered in the week ended Monday December 24.